§39-14  Federal tax exempt status;
preference; protection.  (a)  Bonds issued pursuant to this part, to the
extent practicable, shall be issued to comply with requirements imposed by
applicable federal law providing that the interest on the bonds shall be
excluded from gross income for federal income tax purposes (except as certain
minimum taxes or environmental taxes may apply).  The director of finance is
authorized to enter into agreements, establish funds or accounts, and take any
action required in order to comply with applicable federal law.  Nothing in
this part or this chapter shall be deemed to prohibit the issuance of bonds,
the interest on which may be included in gross income for federal income tax
purposes.



(b)  For the purpose of insuring that interest
on bonds issued pursuant to this part which is excluded from gross income for
federal income tax purposes (except as provided in subsection (a)) on the date
of issuance shall continue to be so excluded, no state officer or employee, or
user of a project or program shall authorize or allow any change, amendment, or
modification to a project or program financed or refinanced with the proceeds
of the bonds which change, amendment, or modification thereto would affect the
exclusion of interest on the bonds from gross income for federal income tax
purposes unless the change, amendment, or modification shall have received the
prior approval of the director of finance.  Failure to receive the approval of
the director of finance shall render any change, amendment, or modification
void. [L 1988, c 28, pt of §3]